View more on these topics

IFA business wrecked after PI failed to cover adviser’s fraud

An IFA is handing over its clients to a neighbouring firm after the business fell apart because of a fraud by one of its advisers.

Lancashire firm Bowland Financial Management collapsed when it was discovered that adviser Kevan Ian Berry had been pocketing client cash.

After Berry was jailed for four years, the firm lost its FSA authorisation because of PI errors uncovered after the fraud. It was driven into liquidation and declared in default by the Financial Services Comp-ensation Scheme.

Director John Nixon, who spent 38 years building up the business, has been forced to hand over clients since he is no longer allowed to do business. He estimates the business has lost 850,000.

After Berry pleaded guilty in court last year to six counts of stealing monies, one of attempting to steal and four of procuring a valuable security by deception, the PI insurer for Bowland argued that it should not meet the costs for client claims as a PIA fine against the firm in 1997 was not declared on the most recent policy, despite being declared previously. The FSA held Nixon responsible and removed authorisation from the firm and him.

Nixon says: “This should send out a message to any IFA firm out there. A clever individual could try to get away with a fraud and the person who runs the firm could be to blame. You get punished if you do not know everything.”


Pension edge: Mike Brown

Careful selection of the right section 32 policy will provide the solution for many clients who are members of occupational pension schemes and are looking to protect their accrued tax-free cash entitlement after A-Day.

Pima wins accreditation

The Pep and Isa Managers Association has got accreditation from the Securities & Investment Institute to deliver investment administration qualification educational modules.

How to take Aim and hit the target

Cavendish Asset Management fund manager Tim Roberts says Aim now presents some attractive options for investors, particularly in the light of tax breaks, and outlines effective strategies to get the best out of the junior market.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm